JAPAN AIRLINES

PRESS RELEASES

  • March 10, 2005

JAL MEDIUM TERM CORPORATE PLAN FOR 2005-2007

Tokyo March 10: The JAL Group today announced the group's medium term corporate plan for the three financial years' period from April 1st 2005 through to March 31st 2008.

In FY2004, to make up for increased fuel costs JAL implemented contingency measures to increase revenue by 47 billion yen, but JAL expects that severe business conditions will continue into FY2005 because of continuing high fuel costs.

However amid this difficult environment the JAL Group will build a business structure that can produce profits in any environment, through reforms of business structure and to build a strong corporate constitution that ranks with the airlines of Asia and is capable of growth.

The three major areas of structural reforms are as follows:

1) INTERNATIONAL PASSENGER BUSINESS RESTRUCTURING

International passenger business will concentrate in high profit and high growth routes and will suspend low profits route so as to build a more profit-focused network and we hope to increase cost competitiveness by expanding the role of our low-cost subsidiary JALways and on concentrating on reducing both the number of aircraft types and the number of cabin configurations.

2) NETWORK REFORM

The future focus will be directed at developing growth markets, notably in Asia and China.

3) COST STRUCTURE REFORM

Cost structure reforms include the integration of the group holding company JAL Corporation, JAL International and JAL Domestic into one company. These three companies were formed to facilitate the integration of Japan Airlines and Japan Air System, which was completed in April 2004.

Other cost cutting measures include a review of staffing requirements, with the reduction of 1,400 ground-based jobs by the end of FY2007 in addition to 4,500 jobs being eliminated by the end of FY2006 that were already announced last year in the previous mid-term plan. By March 31 2008, the total number of ground jobs will be 5,900 lower than in April 2002. This reduction will be managed by suspending new hiring, not replacing retiring staff and by natural reduction.

JAL also plans an increase in outsourcing, including moving more activities overseas, notably maintenance. JAL will also review all contracts outside the group. The group plans to reduce the number of board members and eliminate directors' retirement bonuses. Additional measures include the reduction of common costs and the further promotion of e-business in the business process, with the target of an improvement in cost reduction of 75 billion yen by the end of FY2007. (March 31, 2008) and in the longer term of 100 billion or more annually.

The JAL Group will aim for simplification in various ways including adopting a slimmer group management structure through integration. A key word in developing a more effective business process is SIMPLIFICATION, which will be achieved by expanding the use of Information Technology (IT) internally and externally.

The objectives of the new medium term plan are:

  1. FY2005: Net income of 10 billion yen or more

  2. FY2006: Return international passenger business to profitability

  3. FY2007: Consolidated operating profit of 100 billion yen.

CORPLAN MAR 10 2005.pdf
SHARE
TITLE

この著作物(以下「本著作物」といいます)をご利用者がダウンロードのうえ利用するには、本著作物の利用方法等を規定する日本航空株式会社(以下「JAL」といいます)の「著作物利用規約」(以下「本規約」といいます)を理解し同意いただく必要があります。本規約に同意いただいた方、またはJALの事前の書面による許諾を受けた方に限り、本著作物の利用許諾を受けたこととし、その他の場合には本著作物を利用することはできません。

著作物利用規約

本著作物の著作権はJALが保有するものとします。

ご利用者は、報道または解説を目的とする場合に限り、非独占的に、本著作物を利用、複製、上演、演奏、上映、展示、口述、公衆送信することができます。

ご利用者は、本著作物につき、製品またはテクノロジーの宣伝(広告、パンフレット、雑誌・書籍の表紙、ストックフォト、販促品における利用を含みますがこれらに限られません)その他いかなる商業目的における利用はできないものとし、JALの事前の書面による許諾なく、頒布、譲渡、貸与、翻訳、翻案することはできず、本規約により許諾を受けた権利の全部または一部を第三者に再許諾することはできません。また、いかなる理由においても、本著作物の全部または一部を不鮮明化等するなどの改変を行うことはできません。

ご利用者が本規約に違反した場合、ご利用者が本規約に基づくJALの要請に応じない場合その他JALが必要と認めた場合には、JALはご利用者に対し、本著作物の利用を直ちに中止し、本著作物および全ての複製物の返還または破棄を請求することができ、ご利用者はかかる請求に直ちに応じるものとします。

JALは事前に何ら予告することなく、本著作物の提供を中止し、もしくは本著作物の内容または提供方法を任意に変更することができます。

JALは、ご利用者が本著作物を利用したことに関連してご利用者が被った損害、データ破損、機器の不具合、機会損失その他一切の不都合から免責されるものとします。

本規約に定めのない事項については、本ウェブサイトの「サイト利用規約」の定めが本規約と一体をなすものとして適用されるものとします。